Raising funds across the Boards
THE FUND RAISER: The trend of small raisings continued as the juniors boosted their bank balances this week.
Keysbrook mineral sands project fully funded
MZI Resources (ASX: MZI) has secured approximately US$64 million in Project Debt Facilities for its development ready Keysbrook mineral sands project in Western Australia, paving the way for construction to commence in late June 2014, with first production scheduled for mid-2015.
The debt funding offer is fully underwritten by RMB Australia Holdings Limited (RMB) and has been arranged by RMB Resources Limited.
The Project Debt Facilities, combined with a previously announced US$41.5 million Keysbrook funding package to be provided by Resource Capital Fund VI L.P. (RCF), mean MZI is now fully-funded for the construction and development of Keysbrook.
“In our view, having two highly regarded financial institutions express their confidence in Keysbrook through the provision of funding is a sign of the project’s technical and economic strength,” MZI chief executive Trevor Matthews said.
“Our feasibility studies show that Keysbrook will generate strong returns, even at this relatively low point in the mineral sands economic cycle.
“Based on forecasts provided by mineral sands analysts, the recovery in the feedstock demand cycle should be well underway by the time Keysbrook comes into production, leaving MZI ideally placed to benefit from the project’s relatively low capital and operating costs, premium product suite and access to key markets.”
Sale of Californian Assets
Neon Energy (ASX: NEN) has executed a binding Purchase & Sale Agreement with a major Californian exploration and production company, for the sale of the company’s Californian assets with a purchase price of US$26.95 million.
The buyer is a subsidiary of a publicly listed company, which Neon said wishes to remain anonymous for commercial reasons.
The deal comes as a result of Neon Energy having appointed Roth Capital Partners last year to consider various initiatives to realise additional value from the company’s Californian asset portfolio.
The review determined the capital investment required to achieve a material return on investment from those assets would be be better off being spent on capturing high potential exploration assets elsewhere in the world.
With cost reductions Neon has recently implemented, the divestment of the Californian assets will achieve a reduction in group corporate overheads of some 40 per cent.
Neon Energy said this means it will be well funded to embark on a new phase of growth, and does not expect to raise further funds in the foreseeable future.
Placement for WA gold and copper exploration
Aruma Resources (ASX: AAJ) has agreed to raise $560,000 through a placement of 20 million shares at a price of 2.8 cents per share.
The placement is being made to professional and sophisticated investors with Grange Capital Partners acting as Lead Manager to the offer.
The funds raised will be used for targeted exploration programs on the company’s Glandore gold project and Bulloo Downs copper project as well as costs of the issue and general working capital.
Completion of $20.4 million placement
Maverick Drilling and Exploration (ASX: MAD) has completed a $20.4 million placement to institutional and sophisticated investors at 31 cents per share.
The Placement closed oversubscribed with strong support from both existing and new investors.
The proceeds of the placement will be used principally to fund the human resource talent and infrastructure required by Maverick to enhance the company’s oil and gas technical capability and better position it to assess, develop and execute future oil and gas opportunities.
“We appreciate the support of Shareholders for this important addition to our balance sheet,” Maverick Drilling and Exploration Chief Executive Officer and Executive Chairman J. Michael Yeager said.
“Our rebuilding of Maverick into a fully capable Oil and Gas company and the pursuit of new opportunities is in progress as discussed this week.
“We look forward to updating shareholders as we reach key milestones in this important refocus of the company.”